Oslo: RS Platou came out yesterday with a bullish report on China’s iron ore imports, suggesting the cape slump could end this year and 2014 and 2015 could see a decent rally for the hard hit sector.
Demand growth will exceed fleet expansion by the equivalent of about 41 iron ore-carrying capesize vessels in 2014 and by 81 ships in 2015, the Oslo-based investment bank said.
Moreover, a 6% expansion in Chinese steel output will help generate work for about 70 to 80 vessels this year compared with 114 joining the fleet, it said.
“We see the capesize market to bottom out in 2013 and to gradually improve to mid-cycle levels in 2015,” Platou analyst Frode Moerkedal said in the report. “Chinese steel production has been increasing the last few months. This is a marked improvement from the zero growth pace seen last summer and is in our view another data point confirming improved Chinese economic growth.” [10/01/13]
